Indian stock markets opened in positive territory on Thursday, November 12, supported by falling crude oil prices and growing hopes of progress in peace negotiations involving the US-Iran and Russia-Ukraine conflicts.
A few minutes after the opening bell, the Sensex 30 was trading at 82,084.31, gaining 204.91 points or 0.25%. The Nifty 50 stood at 25,294.85, up 0.16%. Bajaj Finance emerged as the biggest gainer in the Sensex 30 index during early trading.
Top Gainers and Losers in Early Trade
Among Sensex 30 stocks, Bajaj Finance, ITC, State Bank of India (SBI), ICICI Bank and Axis Bank were among the leading gainers.
On the other hand, UltraTech Cement, Infosys, Bharti Airtel, Mahindra & Mahindra and Hindustan Unilever were among the stocks trading lower.
Crude Oil Prices Fall on Hopes of Peace Talks
International crude oil prices declined by more than $1 per barrel on Thursday as investors responded to expectations of progress in diplomatic efforts related to the US-Iran and Russia-Ukraine conflicts.
According to Reuters, Brent crude futures dropped $1.14, or 1.2%, to $91.62 per barrel. US West Texas Intermediate (WTI) crude futures also declined by $1.04, or 1.2%, to trade at $85.49 per barrel. In the previous session, Brent had gained around 1.4%, while WTI rose 0.6%.
Hiroyuki Kikukawa, chief strategist at Nissan Securities Investment, a unit of Nissan Securities, said markets were reacting to expectations that behind-the-scenes efforts could lead to a ceasefire between Russia and Ukraine. He also noted that the Iran conflict was unlikely to escalate ahead of next week’s US-China summit, Reuters reported.
Rupee Slips Against the US Dollar
The Indian rupee weakened by 6 paise in early trading on Thursday, reaching 93.77 against the US dollar.
In the previous session, the domestic currency had gained 6 paise to close at 93.71 against the dollar. The earlier recovery was supported by strength in Indian equity markets and foreign capital inflows.
Asian Markets and Previous Session’s Performance
Asian markets showed a mixed trend during Thursday morning trading. At around 8:45 AM, GIFT Nifty was down 0.21%. Japan’s Nikkei 225 gained 0.63%, Singapore’s Straits Times rose 0.07%, while Hong Kong’s Hang Seng declined 1.10%.
Taiwan Weighted advanced 0.18%, South Korea’s KOSPI gained 0.91%, and Indonesia’s Jakarta Composite climbed 1.41%. Meanwhile, Thailand’s SET Composite dropped 3.14%, while China’s Shanghai Composite was up 0.18%.
In the previous trading session, Indian benchmark indices closed higher after giving up some of their early gains. Lower energy prices and a reversal in foreign fund outflows supported market sentiment.
Rajesh Agarwal of AUM Capital said domestic indices started the session on a positive note and extended their gains, helped by easing crude oil prices amid indications that tensions involving Iran could be cooling. However, selling in realty, IT and pharmaceutical stocks limited the overall market advance.
The IT, pharma and realty sectors declined by around 0.5% to 1%, while auto, banking and FMCG stocks gained between 1% and 2%.
The Sensex finished 772.75 points higher, gaining 0.95% to close at 81,879.40. The Nifty 50 advanced 210.40 points, or 0.84%, to settle at 25,255.05.
The BSE MidCap index gained 0.22%, while the SmallCap index slipped 0.31%. Market breadth remained positive, with 2,913 stocks advancing, 1,592 declining and 222 ending unchanged out of 4,727 stocks traded on the BSE.
Disclaimer
This article is for informational and educational purposes only. It should not be considered investment advice or a recommendation to buy or sell any stock or financial instrument. Stock market investments are subject to market risks. Readers should conduct their own research and consult a qualified financial adviser before making investment decisions.